Survey On Loss Of Real Estate Executives: Insufficient Equity Incentive In Listed Companies

On the night of May 9th, 000002.SZ announced that the company had completed the option incentive plan in May 9th.

Vanke granted a total of 810 incentive objects to 108 million 435 thousand stock options, and the exercise price was 8.89 yuan.

Assuming that all future exercise rights, the maximum number of shares that can be generated is equivalent to 0.9862% of the total share capital of the company.

Among them, Wang Shi was awarded 6 million 600 thousand stock options.

It is also dazzling, because some of the incentive object from the company to leave, no longer has become the "option incentive".

A senior real estate industry once ridiculed that Vanke executives left because of Wang Shi (Chairman of Vanke).

Is Wang Shi really so mean, while Pan Shiyi is generous boss?

High salary confusion

Just like the whole society's miniature portrayal, dissatisfaction with salary distribution lies in executives of real estate companies and levels. Even in the field of external industry, the overall salary level of the real estate industry is already low.

According to the annual report, the average annual salary of Vanke executives rose from 2 million 114 thousand and 500 yuan in 2009 to 2 million 449 thousand and 100 yuan in 2010 on the premise that the net profit increased by 36.65% annually.

From the statistical data of mainland listed housing companies that have published annual reports, Wang Shi, chairman of Vanke, ranks first in the annual salary of 7 million 600 thousand yuan, followed by Ren Zhiqiang, chairman of Huayuan Real Estate (600743.SH), with an annual salary of 7 million 581 thousand and 700 yuan, ranking third as CEO of Vanke Yu Liang, with an annual salary of 6 million 800 thousand yuan.

In addition, Sun Qiuyan, the general manager of Huayuan Real estate, has an annual salary of 5 million 160 thousand and 800 yuan.

SOHO China (00410.HK) annual report shows that Pan Shiyi's salary in 2010 was 5 million 950 thousand yuan, Zhang Xin was 5 million 380 thousand yuan, and President Yan Yan was 5 million 440 thousand yuan.

From the perspective of salary, SOHO seems to be less than Vanke.

But Pan Shiyi is the biggest boss of salesmen.

"SOHO sales commission commission ratio is the highest in the industry."

Wang Ke, partner of Xiangan consulting company, said.

Over the past few years, SOHO China has consistently adhered to a low advertising investment and high commission sales mode, and its sales staff ranked highest in the real estate sector.

Allegedly, Sanlitun SOHO in 2008 against the market price increase 8 times, a trump card salesperson completed sales of 1 billion 560 million yuan that year, after tax income is as high as 4 million yuan.

Insiders also pointed out that from the perspective of professional managers, the annual salary level of real estate executives from 5 million to 7 million yuan is also normal. At least, compared with the tens of millions of salaries of Wang Yawei, the famous fund manager of Huaxia Fund Management Company, the annual salary of Wang Shi, chairman of Vanke, who has created a net profit of 7 billion 283 million yuan, is not excessive.

Because Wang Shi has been keen on mountaineering and adventure in recent years, he has been divorced from the daily management of Vanke. His high salary has caused controversy among some people.

In response to the query of a netizen on Wang Shi micro-blog, Wang Shi retorted, "Vanke is the largest residential development enterprise in the world. As chairman, do you think RMB is 700 years high?"

In the past 4 years, Wang Shi's annual salary reached 6 million 910 thousand yuan in 2007. In 2008, it dropped to 2 million 480 thousand yuan due to the financial crisis. In 2009, it recovered to 5 million 900 thousand yuan and raised to 7 million 600 thousand yuan in 2010.

Vanke's performance in 2010 was more than 100 billion yuan in sales, and its net profit increased by 50% over 2007, more than Wang Shi's annual salary increase.

In terms of industry, the salaries of Vanke executives are not high.

The data disclosed in 2010 showed that Li Zeju, the vice chairman of the board of directors of Changjiang Industrial (000001.HK) and Li Jiacheng's eldest son, ranked first in the annual salary of 46 million 860 thousand.

Huayuan Real Estate chairman Ren Zhiqiang ranked fourth in 7 million 74 thousand, Wang Shi ranked seventh in 5 million 903 thousand and 300, and Pan Shiyi ranked ninth in 5 million 468 thousand.

Data show that compared with the high salaries of Vanke and Huayuan Real estate, some executives of listed housing companies are poorly paid. Most of them are in the range of 200 thousand -50 yuan, or even less than the salaries of two level managers of fund management companies.

For example, in Guangyu development (000537), the salary of 13 executives combined with a total of only 489 thousand and 500 yuan, which is not as high as a top executive of Vanke.

On the basis of the 2010 annual report, a Shanghai consulting agency published the list of senior executives in China, showing that 8 of the top 10 top executives of Listed Companies in 2010 came from the financial and real estate industry.

Finance ranks first and real estate ranks second.

From the industry perspective, the highly paid real estate and auto industries are the worst hit areas for executives to leave.

Under the guidance of the property market regulation, incomplete statistics show that in 2010, there were about 117 senior management positions in the listed housing enterprises, which was called the "separation year" of real estate by the industry.

Since April 2010, Lin Juchang, chief financial officer of Longhu real estate, and Wang Shaojian, President of SOHO China, have resigned.

In May 22nd of that year, Guo Guoqiang, general manager of the golden group director and capital management department, resigned. In June 28th, Zhao Hanzhong, former director of the group, senior vice president and general manager of Shanghai company, applied for resignation. In July 5th, President Kim di Zhang Huagang resigned.

The resignation of Jindi group has become the climax of this round of turmoil in housing prices. Zhao Hanzhong, Zhang Huagang and chairman of the golden land, Ling Ke, are known as the "three carriages" of gold, and have gone to second.

In addition, Vanke, Huarun, Greentown, poly, and health development have left their senior executives this year.

A foreign capital real estate business executive lamented to our reporter that "people's mentality is quite different from that of the mature economic system. In China, the real estate industry is known as a profiteering industry, the market is too good, and professional managers are sometimes overconfident and impetuous."

The executive disclosed that his company's remuneration is medium level in the industry, but because foreign companies pay taxes strictly, they can not compare with private enterprises.

Private enterprises have various means of tax avoidance, and private Real Estate Company told the reporter that the monthly payroll is only 3000 yuan, and the rest is tax avoidance and cash payment.

According to the current personal income tax formula, 7 million annual salary does not calculate all social insurance premiums, it needs to pay 3133725 yuan personal income tax.

Salary is one of the key factors that affect the retention and retention of professional managers.

Just like the whole society's miniature portrayal, dissatisfaction with salary distribution lies in executives of real estate companies and levels. Even in the field of external industry, the overall salary level of the real estate industry is already low.

Whether salary incentive is effective or not can really stimulate the potential of human capital of enterprises, which plays a decisive role in improving the corporate governance structure and the long-term development of enterprises.

Short incentive

In the traditional incentive mechanism of human capital, salary incentive occupies the most basic position. Whether the salary incentive is effective or not can really stimulate the potential of human capital of enterprises, which plays a decisive role in improving the corporate governance structure and the long-term development of enterprises.

On the one hand, it is used to coordinate the contradictions between owners and operators, so that the interests of both will be consistent and achieve the goal of maximizing shareholder value.

On the other hand, it can also stimulate the enthusiasm of ordinary workers and promote enterprises to realize their best interests.

For a long time, the remuneration of managers of Listed Companies in China usually adopts the form of company bonus plus annual salary system. This short-term incentive leads to serious shortage of executives' long-term incentive in domestic listed companies.

In recent years, the loss of executives has also led to deep thinking of some companies. If remuneration is only short-term incentive, equity incentive is regarded as a long-term incentive mechanism.

Vanke President Yu Liang said at the shareholders' meeting that Vanke had had two equity incentives before, and the third stage equity incentive is the most comprehensive condition. If the performance is mediocre, it is not suitable for incentives.

Not only Vanke, but also the intention of most companies to launch equity incentive.

In addition to Vanke, Chinese enterprises (601668.SH), the first state-owned enterprises of state-owned enterprises (600376.SH), and small and medium-sized real estate companies, Huaye real estate (600240.SH), have introduced equity incentive plans.

However, the stock market cycle is increasing and the industry cycle is fluctuating, which makes it difficult to implement the equity incentive plan.

Because share prices have fallen too fast and fallen too sharply, many equity incentive plans have failed to get into the follow up process.

In April 11, 2008, 000667.SZ launched the equity incentive price of 12.32 yuan / share, but by September 27, 2008, when the celebrities announced that they would terminate the equity incentive, the share price had already dropped to 3.40 yuan / share, and the revaluation price was about 5 yuan / share, which was much lower than the exercise price.

The second equity incentive scheme of celebrities is announced in April 19th this year because its performance is not up to standard.

But in fact, equity incentive is also hard to retain some executives' hearts.

Compared with the contribution made by executives, the equity incentive of listed real estate companies is seriously insufficient, and incentive conditions are not fully marketable, which can not become a bargaining chip to attract some executives.

Starting a business or continuing to work?

Ren Hui, general manager of Tao Ran business management, once led the Vanke Group's "strategic development plan for the next ten years" in the planning department of Vanke Group, and now he left, he believes that the departure of Xu Hongge and Xiao Nan is inevitable at the beginning of this year.

"The people who leave are not not excellent, but on the contrary, they have better ideas. To the Xu Hongge level, professional managers, salary and equity incentives are not what they are most concerned about, and sometimes even the factors that determine whether the corporate culture determines their personal retention or not."

Ren Hui said.

In addition, he believes that compared with the contribution made by executives, the equity incentive of listed real estate companies is seriously insufficient, and incentive conditions are not fully marketable, which can not become a bargaining chip to attract some executives.

Most of the executives who leave behind seem to have better career planning.

Former SOHO chief executive Su Xin, after leaving SOHO, founded the Gao He investment fund and embarked on the road of entrepreneurship.

He explained why he left. "I hope I can do something."

Although SOHO can get a high salary, the pressure is very clear.

Wang Ke said, "although the platform has left SOHO, people who have been trained in SOHO have a belief.

Sometimes, when you push yourself to a desperate situation, you will find the advantages of being out of the way. People will discover the potential that you never know. "

Wang Ke and Zhao Jingchuan, who left with SOHO, jointly founded the Xiangan consulting company.

The real estate people who were influenced or influenced by Wantong culture in the early years were more willing to be bosses after leaving.

It is said that Xu Hongge and Xiao Nan who are leaving will also start their own businesses.

Including Zhao Hanzhong, director and senior vice president of Shanghai Jindi group, and general manager of the general manager of the company, Zhang Huagang, President of Jindi, all of them have set up a company.

There are also some people who embark on the road of re becoming professional managers.